Question
Maytag Company earns $4.80 per share. Today the stock is trading at $59.25. The company pays an annual dividend of $1.40.
Calculate (a) the price-earnings ratio (round to the nearest whole number) and
(b) the yield on the stock (to the nearest tenth percent)
Calculate (a) the price-earnings ratio (round to the nearest whole number) and
(b) the yield on the stock (to the nearest tenth percent)
Answers
Damon
59.25 / 4.80 = ?
100 (1.40/4.80) = ?
100 (1.40/4.80) = ?
Heyhi
Hey for b - the yield on the stock, the answer is 2.4%. I am not sure how to get that.
Damon
Oh, sorry, I used earnings not price.
100 (1.40/59.25) = 2.36 % round to 2.4%
100 (1.40/59.25) = 2.36 % round to 2.4%